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Mosaic's (MOS) Q1 Earnings Meet Estimates, Sales Beat

The Mosaic CompanyMOS is a leading producer and marketer of concentrated phosphate and potash for the global agriculture industry. It is the largest producer of finished phosphate products globally.

Mosaic remains committed to expand its annual potash production capacity. However, the company is facing a challenging business environment in agriculture and is seeing weak demand for nutrients. The company is also exposed to a weak pricing environment.

Let’s have a quick look at this fertilizer company’s first-quarter release.

Estimate Trend & Surprise History

Investors should note that the earnings estimate for Mosaic for the first quarter has remained static over the past month. Mosaic has beaten the Zacks Consensus Estimate in 3 of the trailing 4 quarters with an average positive surprise of 12.10%.

Earnings

Mosaic’s adjusted earnings were 14 cents per share for the quarter, in line with the Zacks Consensus Estimate.

Revenues

Mosaic recorded net sales of $1,674 million, down roughly 21.7% year over year. That beat the Zacks Consensus Estimate of $1,604 million.

Key Stats/Developments to Note

Mosaic expects phosphates sales volumes in the band of 2.3 million to 2.6 million tons for the second quarter of 2016 versus 2.8 million tons for the same quarter in 2015. Potash sales volumes have been forecast in the range of 1.9 million to 2.2 million tons for the second quarter, lower than the 2.3 million tons in the prior year quarter.

Zacks Rank

Mosaic currently has a Zacks Rank #5 (Strong Sell), but that could change following the company’s earnings report which was just released.

Market Reaction

Mosaic’s shares were inactive following the release. It would be interesting to see how the market reacts to the results during the trading session today.